Americans are living longer and for many people their second half of life is including new hobbies, traveling, a second career, or simply spending more time with family. However, in some cases, unexpected situations arise that were not planned for, such as supporting adult children or elderly parents, market changes, an illness, or even an untimely death. Planning for retirement sooner rather than later has never been more important.
The Four Stages of Retirement
Americans can now expect to live 20-40 years in retirement and running out of money is a top concern for many retirees. When looking at retirement planning, view it as a life-long process with four distinct phases.
Stage 1 – Preparing for Retirement
Stage 2 – Transitioning into Retirement
Stage 3 – Living in Retirement
Stage 4 – Leaving a Legacy
Preparing for Retirement
For some people, stage one begins in their 20s and 30s and for others preparing starts much later. During this stage, many young families are concerned about paying the mortgage and having enough funds to send their children to college. Beginning to save for retirement is important, but during this phase it is foremost important to protect your family from financial tragedy. Life insurance is a must-have for young families.
Life insurance is a must-have for young families.
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Transitioning into Retirement
This stage poses one of the most crucial times in one’s financial life. Unexpected expenses during this stage can have a major impact on retirement. 70 percent of